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A curious fact

"According to Metcalfe's Law, the value of a network is related to the square of the number of connected users. Considering an estimated one million active users per day on the Bitcoin network, the application of this principle suggests a theoretical network value of 1,000,000,000,000,000,000.

Taking into account the total amount of Bitcoin that could exist, which is 21 million, we could estimate the theoretical value of each Bitcoin by dividing this value by the total amount. However, given that there are currently approximately 19.5 million Bitcoin in circulation, adjusting this calculation, the theoretical value of each Bitcoin, under this approximation, could be around $51,282.05.

Car44 2y ago

But the per Bitcoin price is set at the exchange (theoretically all these Bitcoin are for sale, we will ignore silly people who store on exchange). That would make

1 quadrillion ÷ 3 million

= 333 Billion 👀

Someone explain to me why I am wrong!

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Discussion

zhenya 2y ago

Because the number on exchange is not fixed. If bitcoin pumps or dumps that could change. Plus off exchange settlement brokers like unchained, fireblocks, ceffu, sfox let you buy and sell from a self custody wallet creates much noise to 3m figure.

Car44 2y ago

I think we need Jeff Booth on this one!

zhenya 2y ago

Something like everything goes to zero against bitcoin or You can’t measure price from within the broken system ha.